A time capsule of the greatest financial mania in the history of mankind, told in real-time by regular folks and patriots. May future generations better understand the madness of crowds, and how power and money corrupt.

April 17, 2008

Again, like a broken record, as predicted here, homeowners associations across the land are running into big issues now that the housing gamblers and failed flippers can't pay their monthly nugget - or can't even be found.

I'd love to hear what's going on in Failed Flipper monuments like the Third Avenue Lofts in Scottsdale, or the Club at Brickell in Miami for starters. Not quite the HOA-paid-for wine and cheese parties everyone expected, eh?

ORANGE COUNTY, Fla. -- The Avalon Lakes Homeowners Association was on the brink of bankruptcy. At one time, it had a $140,000 deficit. The subdivision said people who fell into foreclosure stopped paying their HOA FEES.

“The people that weren’t paying, still aren’t paying and we’re basically paying for them,” said Cynthia Weclew, a homeowner.

There are concerns about what will happen to the communal areas of the subdivisions if the HOAs can’t afford the upkeep.

44 comments:

There was an article in the local paper Saturday about homeowners mowing the lawns and taking care of abandoned properties in their subdivisions so the neighborhoods don't get too run down.

The honest guy has to pick up the pieces left behind by the previous owner and the bank. Seems to me the new owner - the bank - should have to keep these properties up to code.

But, they, too, expect the honest people to pay the price - bail out the banks, increase their HOA fees to make up for those who aren't paying their dues, watch their own homes fall in value, and now, mow their thieving neighbors' lawns.

Someone please write an ending to this story where the good guy finally wins.

Abandoned houses eventually go to abandoned neighborhoods - after all- how long is the neighbor going to keep up all those abandoned lawns before he gets pissed & realizes that mowing lawns all day long on Saturdays isn't "saving" his homes value anyway ???

The REO's that begin to eventually sell set the new comps & KILL his value - no matter how much he mows!!

Neighborhood "Mow-Man" eventually smells the coffee & throws in the towel and:

What is better than on a cool autumn night, swishing down a 6-pack of Red Dog and sniffing in the unmistakably yummy aroma of the toasted snapper turtle being skewered from mouth to ass, grilling on a Chinese green bamboo stick all sizzling, sputtering, fat popping over a bed of white hot charcoal.

------

The Americano is TOAST !!!

The land of the Americano is slowly decaying away like a putrid carcass of a rotten whale washing up on a crowded beach for all the world eyes to see, view, commentate on the state of the once almighty nation, the land of the Snapper Turtle.

Who can we blame on this retro-deed except ourselves ? The mentality of the current Americano is just amazing if not stupefying. Empty of feeling, obligation, morality, duty, honor, sense of self-worthiness, the only way to go for the Americano is down the gutter with the rat...

Such is the fate of the fat-ass Americano. What a lowdown shame for such a great nation once !

George Washington is feeling real bad right now in his tomb...

But hey, SHRUB's lovers, you got what you asked for. Satisfaction guarantee from the land of the SHRUBs !!!

How about we go back to a normal society where people take care of their own f*cking lawns, etc?

HOAs are based on the collective model, which in other words is called communism. And they're run by losers who experience the only taste of power they'll ever have in their miserable lives, leading to abuses.

Nowhere is this worse than in Arizona, where HOAs are run like Hitler's gestapo and every piece of legislation introduced to control them is shot down.

The primary reason for a HOA is that it keeps out the niggers. And I don't mean just mis-behaved Blacks, or just Blacks in general. I mean largely people like ME -- as White as can be, but who still don't conform to the "homeowner ideal". HOAs were formed to ensure and enforce the homeowner ideal -- which is people consuming and using credit in ever increasing amounts, in order to keep up a certain appearance.

Since the "fear of niggers" has fueled a lot of this false economy and construction, the denial around the issue is so strong that we're going to watch people spend themselves into HOA oblivion. There will be more stories of HOA absurdity to come. As other posters have noted, this will just deepen the price discounts for homes, eventually. HOAs have always been a strong fiscal liability; they could only have been supported once house prices rose hugely. In this age of decreasing prices, the liability will become undeniable (that is, once people finally exhaust all other possibilities).

Frank, I agree with you TOTALLY. I lived in a subdivision once where the "President" of our HOA was a jackass who only got the position because nobody else wanted it. At every meeting, there he was: Strutting around like an old buzzard in heat. He was always trying to find a way to use the weight of the HOA to micromanage, IOW, to stick his nose in my business. One day we held the monthly meeting at the poolhouse. I was hoping that he would've gotten a little closer to the edge of the pool, and I was going to knock his ass in the water - accidentally, of course. I'm serious.

My old HOA had one "covenant" that said you couldn't have clotheslines. I guess that they were afraid that someone might accuse them of being of the "common folk" variety. Or, it could be that they were afraid that someone might see their underwear with its 42" waistband, hung out on the line.

I sold my house, and moved from that place. It was one of the best decisions that I ever made.

My current small place of residence, with its clothesline, suits me just fine.

Well...I do know that a HOA can and will foreclose on your house faster than a lender will, and you have virtually no chance of winning against them in court. Happened to a friend of mine in Florida. She was current on her mortgage but due to finances wasn't on her HOA fees.

They sold her condo to a "friend" of the board for 13k before the ink was even dry on the foreclosure, and she lost all of her equity in the place (over 100k). All of that legal. HOA's are evil.

So, can't lose any sleep over the poor widdle HOA's catching it in the shorts now. Boo friggin' hoo.

Seems to me the new owner - the bank - should have to keep these properties up to code.

Can't the HOA foreclose on the lender if they don't keep up with HOA codes and pay the fines? Now that would be real irony. The HOA can sell the home for pennies on the dollar and keep it as profits. The lender gets a 100% loss on the loan.

How about we go back to a normal society where people take care of their own f*cking lawns, etc?

HOAs are based on the collective model, which in other words is called communism. And they're run by losers who experience the only taste of power they'll ever have in their miserable lives, leading to abuses.

Nowhere is this worse than in Arizona, where HOAs are run like Hitler's gestapo and every piece of legislation introduced to control them is shot down.

Just want to clear up a little misunderstanding re. commies v. Nazis. HOAs want power and control over your private property. That is a goal of both commies and Nazis as there can be no rights under either type of regime. No rights means no private property. The real difference is in implementation. HOAs are Nazis in that if say you did not feel like mowing your lawn for a few weeks the HOA Nazis would force you to comply either through fines or hiring somebody to do it and sending you the bill. A Commie HOA if there were such a thing would force your neighbor who keeps his lawn in tip top shape to mow your lawn for you because your crappy looking lawn proves your "need."

Each option is bad but if you think the Nazis are bad wait til you get a load of the commies.

Whose "lawn" is Obama going to have us HPers "mowing."

Bottom line on HOAs' is people who buy in HOA "communities" are idiots who get what they deserve.

Andrew Hac is right though--Those slimey green "cement ponds" would make great snapper turtle farms.

The HOA's will be the first to see this happen. Then towns, townships and every community will suffer because all of their taxes will go up to cover the portion of services, schools, bonds, etc., that were left by the bankrupt.

I have been taking care of a foreclosure property for 8 months now. I just could not stand to see the beautiful landscaping go down the tubes and than have punks invade the house . I did it because I look at the property everyday and I just didn't want the eyesore .I water the place at my own expense and I pay a landscaper to mow the lawn.

I don't know how much longer I'm going to take care of the property .I have left messages on the real estate agents answer service ,but they have not responded .

I'm lucky that we only have a few foreclosures in this big project of 800 homes ,but it was a older development .We also had a million dollars in reserves in the homeowners funds .

The project that is just a few miles from me is having many problems because that was the project that all the investors wanted to get in on .

This is a horrible situation in a lot of projects and the lenders and builders should be sued for the part they played in fostering this faulty investor based lending .

There is nothing wrong with Homeowners Associations .What is wrong is when lenders lend to people who will default on HOA fees and loans .

The lenders should be sued for creating this situation of selling to investors ,who would walk if they didn't get appreciation . Any borrower that walks should be hounded for the homeowners fees they walked on . Congress should be making new laws to punish the offenders rather than offering bail-outs to these creeps or letting them off scott free .

Congress better get on the ball and stop calling these creep greedy liar loan investors "victims" and start enacting laws to punish all these investors creep and the lenders that enabled them .

What made the disgusting HOA's necessary was all the slobs who can't take care of their own neighborhoods. You have the Mexicans throwing all kinds of trash on the yard, from old junk cars to Dos Equis bottles. Then you have the blacks painting their homes Exorcist-vomit color, then the white trash...well, the name says all. I really don't know why people don't care about turning their neighborhoods into a landfill.

Talking about commies, did anyone here watch the House Hunters International show, a few days ago? They had a couple of nice young Czechs looking for a home to buy in Prague, for their wedding. It was kind of cute.

But then Stalin reality hit. The only thing these kids could afford was outside the city, where they have all those Communist-era projects. What a f*cked up construction! They ended up buying one of those and tried to make cute by painting funk colors and sh!t. But you can't help but feel sad.

Timely article. I'm a banker who got a call early this week from a condo owner needing cash out on a commercial property because of a $40,000 HOA assessment against each unit in his condo complex, for God knows what, but the loan amount wasn't worth my time so I didn't get into the details of his request.

If people actually read HOA documents, it would scare the crap out of them. Even with a unit free and clear of any mortgage you can end up being assessed amounts as high as a mortgage for the rest of the complex.

Seems to me the new owner - the bank - should have to keep these properties up to code.

Can't the HOA foreclose on the lender if they don't keep up with HOA codes and pay the fines? Now that would be real irony. The HOA can sell the home for pennies on the dollar and keep it as profits. The lender gets a 100% loss on the loan.

April 17, 2008 9:09 PM

This would be the most awesome thing EVER!

Which is why it probably won't happen. But a fella can dream can't he?

They just love HOAs in republican Orange County, California. Tollroads too, in the land of the freeway. They hate liberals, but they are in California. Yes, part of the self-loathing closet faction. Privitization means that you pay for what used to be free. I just love these duplicitous, lying, cheating crooks. You would never vote for a republican again if you saw what they are like up close.

What is better than on a cool autumn night, swishing down a 6-pack of Red Dog and sniffing in the unmistakably yummy aroma of the toasted snapper turtle being skewered from mouth to ass, grilling on a Chinese green bamboo stick all sizzling, sputtering, fat popping over a bed of white hot charcoal.

You are one sickkkkkkk puppy. I bet you have to pay people to talk to you.

My old HOA had one "covenant" that said you couldn't have clotheslines. I guess that they were afraid that someone might accuse them of being of the "common folk" variety. Or, it could be that they were afraid that someone might see their underwear with its 42" waistband, hung out on the line.

In Florida, FS 163.04 specifically protects clotheslines and other energy devices based on renewable resources from being banned under deed restrictions. The language is extremely clear and the statute contains a provision to award costs and legal fees to the prevailing party in any lawsuit concerning the devices covered by the law.

"HOAs are based on the collective model, which in other words is called communism. And they're run by losers who experience the only taste of power they'll ever have in their miserable lives, leading to abuses."

"My old HOA had one "covenant" that said you couldn't have clotheslines. I guess that they were afraid that someone might accuse them of being of the "common folk" variety."

Something anyone thinking of living in an HOA should consider is - can you follow their rules? Even if you don't agree with them?

I couldn't get my neighbor to stop double-stacking cars in front of his garage until I double-stacked a few of my own so he couldn't get to his garage for a change. Every time I brought it up to him he said, "It's a stupid rule". The moron didn't realize the rule existed for a reason.

The sad reason HOAs have rules and society has laws is that a lot of people need to have the threat of a fine, arrest, or jail before they will think to be considerate to other people. Sorry, folks. Stop signs don't exist because someone thought it would be good to stop driving every other block. It's because people were unable to think for themselves that another car might be coming from the other direction, and that other car might hurt them. People like my neighbor - self-centered, inconsiderate, arrogant - need rules and laws to keep them safe and so they have some guidance in how to respect other people.

Can't the HOA foreclose on the lender if they don't keep up with HOA codes and pay the fines? Now that would be real irony. The HOA can sell the home for pennies on the dollar and keep it as profits. The lender gets a 100% loss on the loan.

Florida law changed in 2004 to prevent liens/foreclosures for any reason other than failing to pay the HOA's annual/special assessments.

Fines for violation of deed restrictions/rules cannot result in a lien, but lawyers have tried to tag the fines as "special assessments" and attempted liens anyway. I don't know how the courts view this tactic.

Sorry, folks. Stop signs don't exist because someone thought it would be good to stop driving every other block. It's because people were unable to think for themselves

I was addressing the same topic to my wife another day. It's the little things that most idiots brush off as unnecessary or inoffensive that end up collapsing our standard of living, creating larger disasters, or even destroying a nation. For instance, our beach has an ordinance which doesn't allow dogs on the beach wihtout being secured by their respective leashes.

Sure enough, everyday when my wife and I jog on the beach sand, the dogs are all over, jumping on everyone, running wild without leashes while their owners just ignore the whole thing. When you call the dog owners' attention about the ordinance, they still have the nerve to get upset.

One day I took my time to create a probable scenario to one of those retard women, you know, the Obama voters, to see if she could understand the point of ordinances and laws. I almost went home and made a cartoon book with images so she could understand better.

Let's suppose that we have another retard who just washed ashore and got his citizenship, like the dog owners, who doesn't care about the city ordinance of not littering the beach sand. Accordingly, this low IQ throws an empty bottle of beer on the sand. The city tractors, that smooth the sand daily, run over and break the bottle into small pieces of sharp glass.

Then enters the Obama base, allowing the dogs to run wild without leashes until they jump on a little kid playing on the sand, who gets spooked and backs up, stepping on the broken beer glass. The kid contracts tetanus and die in a week.

So here you have it. Those low IQ morons could never foresee such a tragedy because their brains don't work. They're zombies. They can only behave like Pavlov's dogs.

Folks, it's a sequence os small and pathetic mistakes that make jets crash. Another stupid thing that people do is to assume that the driver will stop at the red light for you to walk across the street.

I see over and over again, people see the green light for pedestrians to cross and they immediately take the eyes off the cars coming, that are supposed to stop. So let me ask you a question: Are you 100% certain that the driver coming is not distracted text messaging, had a hit on the crack pipe a few seconds before, had a heart attack, or the strong medication is making his head spin? Are you 100% sure? Well, lots of dead people used to assume things like that, too.

In all fairness anon from April 18, 2008 7:38 PM one can always concoct some strange scenario that has horrible results and use said scenario to justify just about anything. As in the classic "THINK OF TEH CHILDRENS!" bs so popular now a days. A much more likely reason for no loose dogs is so people trying to enjoy the beach don't step in dog crap. So the next time you run into an idiot letting their dog run loose just look around the beach until you find a dog rocket and then rub it in their face(the owner not the dog) That should do it.